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Coronado Corporation, which operates an amusement park, is considering a capital investment in a new ride. The ride would cost $141,000 and have an
Coronado Corporation, which operates an amusement park, is considering a capital investment in a new ride. The ride would cost $141,000 and have an estimated useful life of 5 years. The park will sell it for $66,000 at that time. (Amusement parks need to rotate rides to keep people interested.) The ride will be expected to increase net annual cash flows by $26,200. The company's borrowing rate is 8%. Its cost of capital is 10%. Click here to view the factor table. Calculate the net present value of this project to the company. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to O decimal places, e.g. 125.) Net present value $ TABLE 1 Future Value of 1 (Future Value of a Single Sum) FVFn = (1 + i)" (n) Periods 2% 2.5% 3% 4% 5% 6% 8% 9% 10% 11% 12% 1 1.02000 1.02500 1.03000 1.04000 1.05000 1.06000 1.08000 1.09000 1.10000 1.11000 1.12000 15% 1.15000 2 1.04040 1.05063 1.06090 1.08160 1.10250 1.12360 1.16640 1.18810 1.21000 1.23210 1.25440 1.32250 3 1.06121 1.07689 1.09273 1.12486 1.15763 1.19102 1.25971 1.29503 1.33100 1.36763 1.40493 1.52088 4 1.08243 1.10381 1.12551 1.16986 1.21551 1.26248 1.36049 1.41158 1.46410 1.51807 1.57352 1.74901 5 1.10408 1.13141 1.15927 1.21665 1.27628 1.33823 1.46933 1.53862 1.61051 1.68506 1.76234 2.01136 6 1.12616 1.15969 1.19405 1.26532 1.34010 1.41852 1.58687 1.67710 1.77156 1.87041 1.97382 2.31306 7 1.14869 1.18869 1.22987 1.31593 1.40710 1.50363 1.71382 1.82804 1.94872 2.07616 2.21068 2.66002 8 1.17166 1.21840 1.26677 1.36857 1.47746 1.59385 1.85093 1.99256 2.14359 2.30454 2.47596 3.05902 9 1.19509 1.24886 1.30477 1.42331 1.55133 1.68948 1.99900 2.17189 2.35795 2.55803 2.77308 3.51788 10 1.21899 1.28008 1.34392 1.48024 1.62889 1.79085 2.15892 2.36736 2.59374 2.83942 3.10585 4.04556 11 1.24337 1.31209 1.38423 1.53945 1.71034 1.89830 2.33164 2.58043 2.85312 3.15176 3.47855 4.65239 12 1.26824 1.34489 1.42576 1.60103 1.79586 2.01220 2.51817 2.81267 3.13843 3-49845 3.89598 5-35025 13 1.29361 1.37851 1.46853 1.66507 1.88565 2.13293 2.71962 3.06581 3.45227 3.88328 4-36349 6.15279 14 1.31948 1.41297 1.51259 1.73168 1.97993 2.26090 2.93719 3-34173 3.79750 4.31044 4.88711 7.07571 15 1.34587 1.44830 1.55797 1.80094 2.07893 2.39656 3.17217 3.64248 4.17725 4.78459 5.47357 8.13706 16 1.37279 1.48451 1.60471 1.87298 2.18287 2.54035 3.42594 3.97031 4.59497 5.31089 6.13039 9.35762 17 1.40024 1.52162 1.65285 1.94790 2.29202 2.69277 3.70002 4.32763 5.05447 5.89509 6.86604 10.76126 18 1.42825 1.55966 1.70243 2.02582 2.40662 2.85434 3.99602 4.71712 5-55992 6.54355 7.68997 12.37545 19 1.45681 1.59865 1.75351 2.10685 2.52695 3.02560 4.31570 5.14166 6.11591 7.26334 8.61276 14.23177 20 1.48595 1.63862 1.80611 2.19112 2.65330 3.20714 4.66096 5.60441 6.72750 8.06231 9.64629 16.36654 21 1.51567 1.67958 1.86029 2.27877 2.78596 3-39956 5.03383 6.10881 7.40025 8.94917 10.80385 18.82152 22 1.54598 1.72157 1.91610 2.36992 2.92526 3.60354 5.43654 6.65860 8.14028 9.93357 12.10031 21.64475 23 1.57690 1.76461 1.97359 2.46472 3.07152 3.81975 5.87146 7.25787 8.95430 11.02627 13-55235 24.89146 24 1.60844 1.80873 2.03279 2.56330 3.22510 4.04893 6.34118 7.91108 9.84973 12.23916 15.17863 28.62518 25 1.64061 1.85394 2.09378 2.66584 3.38635 4.29187 6.84847 8.62308 10.83471 13.58546 17.00006 32.91895 26 1.67342 1.90029 2.15659 2.77247 3.55567 4-54938 7.39635 9.39916 11.91818 15.07986 19.04007 37.85680 27 1.70689 1.94780 2.22129 2.88337 3-73346 4.82235 7.98806 10.24508 13.10999 16.73865 21.32488 43-53532
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